Suing Etrade Securities LLC

I want to Know the  US statue cited for suing a brokerage house for freezing/Blocking my account.

I deposited a large check about 3yrs ago, after the check cleared I attempted to move some of the money to a local bank. my account was then frozen reason "wanted to make sure the check cleared" well that was 3yrs ago...Ive tried to call etrade only to be told to send a letter Ive sent countless letter...Always say they didnt get them..I have 3yrs worth of Account Statements...verifying that the money is in my account...however I have no access to the funds....

No one has called me, or mailed me anything about my account...3yrs NOTHing. when I call they tell me to mail them.....and the cycle continues....

I will be suing for release of funds....

There's no statute.

It's common law contract law.

You have a contract with the broker. If the broker wrongly froze your funds you sue for the money back.

Frankly, though, I've never heard of an online brokerage not letting you retrieve your funds (especially not for 3 years) unless you've done something wrong in handling your account.

Is there something else happening that you aren't telling us?

Well, you are not supposed to give actual company names here, but since you have, I can tell you I use that particular brokerage daily.  I've had some issues, but why would you sit around waiting for 3 years just sending letters?

You should be able to log into your account, and send them online messages.

If that didn't work, did you call them? 

I've never had any trouble with them calling back.  I had some trouble with some online billing issues as well as some brokerage trades. 

Have you really never been given a reason for them freezing the account?  I move money back and forth from them and another well known bank all the time.  No problems.

What would cause them to flag you?

Basically, from what you said, you mailed them a physical check (?) and that's been the last you saw of your money for 3 years?

What do you see when you log into your account?

Can you login to your account?

Yes I can log onto the account...it says nothing... I was blocked out of the account for about 2years until my digital security key expired. they have not sent me anything via mail.. no statements... They said they wanted to make sure the check cleared....it has..and the money has been sitting in the account..when I call I am told that the department that is handling my account only communicate via mail...I did a google search on this issue etrade freezing accounts..and I am not the only one with this problem.....

Honeycup:

I did a google search on this issue etrade freezing accounts..and I am not the only one with this problem.....

You're right. I did the same search and found other complaints. I also checked the Ripoff Report and there are 41 complaints.

http://www.ripoffreport.com/Search/etrade.aspx

As a comparison there are only 7 complaints for Ameritrade and 5 for Scottrade.

Might be a good idea to check with your state's attorney general and the SEC to see if anything's going on by way of intervention.

I rather just sue them I had a friend draw up the compliant just need someone to check it out

Honeycup:

I rather just sue them I had a friend draw up the compliant just need someone to check it out

OK.

What court level are you suing in and how much are you suing for?

Have you located the companies statutory or registered agent for the service of process?

Post your complaint here word for word, leaving out company and people's names, of course.

Honeycup:

I rather just sue them I had a friend draw up the compliant just need someone to check it out

Legally, of course, your friend is not supposed to draft court complaints or any other legal documents for you if he's not a lawyer. That's engaging in the unauthorized practice of law. Moreover, if he's not a lawyer he is probably not skilled in legal drafting and may have made mistakes in what he drafted for you. 

Also, check your account agreement. I'm willing to bet that it contains a mandatory arbitration provision, as does pretty much every brokerage agreement. If so, you won't be able to sue in court anyway. You'll have to take them to arbitration.

ok will do. I am suing them in federal court.. I am suing for release of funds........not a $ amount.. I am suing for a specific action, which is for them to release funds... 

however I dont know what cause to check off on the civil cover sheet it says for diversity cases amount must be more than 75k....

And I also must state why/how the Federal court has jurisdiction over my case?

I will post the compliant... 

Basically is the amount is over $75k or if there is a diversity of citizenship- you are a resident of one state and the company's headquarters is in another state- then the suit can be heard in federal court. Also is there are any questions regarding federal law...maybe banking law in this case...it will be heard in federal court.

You need a lawyer.

In May of 2007 the Plantiff ************* (hereinafter *) deposited a ************ loan check in the amount of $**,000.00 into E****** Securities LLC (hereinafter E****** Brokerage account 6****-*****. After which the Plaintiff  attempted to transfer a portion of the funds to a local bank so that she would have easier access to the funds, E***** Immediately cancelled all transfers and blocked the plaintiff from accessing her brokerage account. Upon speaking with an E***** Securities personnel (May 2007) ******* was informed that E****** was holding the check to ensure its legitimacy and to make sure the check cleared the bank. Over the course of 3yrs the plaintiff has contacted E****** several times, only to be informed that the department that is handling this issue only communicates via mail. The Plaintiff has mailed Etrade several times to no avail. Account Statements recently retrieved from www. E******.com shows the balance of account # ******-***** at approximately $**,**9.** and that the account has been collecting interest doing this period. The Plaintiff seeks to be relief and to be no longer harmed by E***** Securities LLC. Plaintiff seeks relief and to regain total and unrestricted access to all accounts located within E******  Securities LLC and its Affiliates. The Plaintiff seeks to have the defendant immediately release or cause to be release any all funds located in deposit with E****** Securities LLC and/or its Affiliates including but not limited to account # ****-****. The Plaintiff ****** seeks to be held harmless in this matter and all funds, and monies returned immediately.

yes but A lawyer will want some of the funds this was a loan that I have been paying on for the past 3yrs I cant afford to give a lawyer 33% and then pay back the orginal amount plus interest.....That makes no sense for  me.. and no the amount in question is less than the $75k

I guess I can cite illegal banking practices, or Securities practices........

TO: adjuster jack consumer here is the civil cover form that I need to fill out

and above is the compliant my friend wrote for me

http://www.ilnd.uscour...

If you do not meet the 75K threshold, you will have to find a specific federal statute that you allege they violated that would give the federal court jurisdiction, or the case will be sumarily dismisssed.  You should also look into filing in state court.

Honeycup:

ok will do. I am suing them in federal court.. I am suing for release of funds........not a $ amount.

In order to be able to sue in federal court, you must either have an issue of federal law or there must be diversity jurisdiction. Diversity jurisdiction requires that you and the brokerage firm be residents of different states and that the amount in controversy EXCEEDS $75,000 (i.e. $75,000.01 or more). Since you are suing to get your money back that they are holding, the amount of money in the account may suffice to meet the requirement for the amount in controversy requirement; I've not researched that to know for sure, however. If the amount in the account is $75,000 or less, however, you clearly won't meet the requirements for diversity jurisdiction. And, given the few facts we have here, I don't see any claim based on federal law.

Honeycup:

And I also must state why/how the Federal court has jurisdiction over my case?

Federal district courts are courts of limited jurisdiction. That means they can only hear certain kinds of claims. You must state in your complaint the basis you claim for the court's jurisdiction in your case.

The filing fee for a complaint in federal district court is $350. The rules for litigating in federal court are complex, and you'll be going up against lawyers for a big corporation. If you do this pro se, you are much less likely to succeed; you may well lose simply on procedural missteps. I'd strongly recommend you hire a lawyer if you are going to go this route. Filing in state court might be less difficult and less costly.

But again, before trotting off and filing a lawsuit, have you read your account agreement? If not, do it now. If the agreement requires mandatory arbitration of disputes between you and the brokerage, then filing a lawsuit is a waste of time. The brokerage will simply file a motion with the court to compel arbitration, which the court will have to grant.

It really would be a good idea to at least have an initial consultation with a civil litigation attorney in your state. Often the initial consultation is free and that will give you a much better sense of your options.

This is really getting annoying to say the least. I live in a different state now from when this matter first began....................